Stock Repurchase Program Announced by Starwood Property Trust (NYSE:STWD) Board

Starwood Property Trust (NYSE:STWD) declared that its Board of Directors has initiated a stock repurchase plan on Thursday, February 26th, RTT News reports. The company plans to buyback $400.00 million in outstanding shares. This buyback authorization authorizes the real estate investment trust to reacquire up to 6.1% of its stock through open market purchases. Stock buyback plans are typically a sign that the company’s board of directors believes its shares are undervalued.

Wall Street Analysts Forecast Growth

STWD has been the topic of a number of recent research reports. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Starwood Property Trust in a research report on Wednesday, January 21st. Wells Fargo & Company cut their price objective on shares of Starwood Property Trust from $22.00 to $21.00 and set an “outperform” rating on the stock in a report on Thursday. Zacks Research raised shares of Starwood Property Trust from a “strong sell” rating to a “hold” rating in a research note on Monday, January 12th. Finally, Keefe, Bruyette & Woods lowered their target price on shares of Starwood Property Trust from $22.00 to $21.00 and set an “outperform” rating for the company in a report on Wednesday, November 12th. Three research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, Starwood Property Trust currently has an average rating of “Moderate Buy” and an average price target of $20.38.

Starwood Property Trust Stock Performance

STWD traded up $0.37 during mid-day trading on Thursday, reaching $18.09. 4,388,901 shares of the company traded hands, compared to its average volume of 3,423,960. The company’s fifty day moving average price is $18.20 and its 200-day moving average price is $18.78. The stock has a market capitalization of $6.70 billion, a P/E ratio of 15.59 and a beta of 1.13. The company has a quick ratio of 1.33, a current ratio of 1.68 and a debt-to-equity ratio of 3.10. Starwood Property Trust has a 52-week low of $16.59 and a 52-week high of $21.05.

Starwood Property Trust (NYSE:STWD) last issued its quarterly earnings data on Wednesday, February 25th. The real estate investment trust reported $0.42 EPS for the quarter, topping the consensus estimate of $0.41 by $0.01. The company had revenue of $492.95 million during the quarter, compared to analyst estimates of $469.53 million. Starwood Property Trust had a return on equity of 8.16% and a net margin of 22.32%.Starwood Property Trust’s revenue was up 8.5% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.48 earnings per share. On average, sell-side analysts expect that Starwood Property Trust will post 1.88 EPS for the current year.

Starwood Property Trust Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, January 15th. Stockholders of record on Wednesday, December 31st were paid a $0.48 dividend. This represents a $1.92 annualized dividend and a dividend yield of 10.6%. The ex-dividend date was Wednesday, December 31st. Starwood Property Trust’s dividend payout ratio is 165.52%.

Key Headlines Impacting Starwood Property Trust

Here are the key news stories impacting Starwood Property Trust this week:

• Positive Sentiment: Board authorized up to $400 million buyback over one year, funded with existing cash — reduces share count, supports the dividend and is a clear near-term capital-return catalyst. Read More.
• Positive Sentiment: Q4 results slightly beat expectations — GAAP and Distributable EPS/metrics topped consensus (reported distributable EPS $0.42 and revenue ~$493M), helping validate underlying earnings power despite a year-over-year EPS decline. Read More.
• Positive Sentiment: Strong capital deployment and liquidity profile: invested $12.7B in 2025, executed a record $4.4B of capital transactions, and ended the period with roughly $1.4B of liquidity — supports growth and flexibility. Company also maintained a long-running, consistent dividend. Read More.
• Neutral Sentiment: Analyst view shifted modestly: Wells Fargo trimmed its price target from $22 to $21 but kept an outperform rating — a slight headwind but still indicates upside from current levels. Read More.
• Negative Sentiment: Book value per share fell ~3.9% year-over-year and the company flagged higher expenses — BVPS erosion is a structural concern for an equity-focused REIT and may limit multiple expansion. Read More.
• Negative Sentiment: Mixed messaging from some call coverage/transcripts — while headline metrics beat, at least one transcript reported a miss on an EPS metric, which can create short-term investor uncertainty and volatility. Read More.

About Starwood Property Trust

Starwood Property Trust (NYSE: STWD) is a publicly traded real estate investment trust that specializes in originating, acquiring and managing commercial mortgage loans and other real estate-related investments. The company’s portfolio spans a variety of asset classes, including senior mortgages, mezzanine debt, preferred equity and direct equity investments in commercial properties. By focusing on both debt and equity capital solutions, Starwood Property Trust seeks to generate attractive risk-adjusted returns for its shareholders through a combination of current income and capital appreciation.

Operating primarily in the United States, Starwood Property Trust deploys capital across a broad range of property types, such as multifamily residential, office, retail, hotel and industrial.